HMRC R&D tax credits statistics 2018 – our commentary

The government is giving more of a boost than ever before to the UK’s most innovative companies, according to the latest statistics. HMRC has provided information on the number of companies claiming research and development (R&D) tax credits and the value of claims for the year 2016-17 so far. There is still time to make a claim, if you think you might qualify contact one of our specialist advisors.

Key points to show the value of this opportunity to innovative business in the UK

Claims since the schemes began

Updates to 2015-16
– compared to previous year

Due to the nature of the scheme, returns for the latest financial year reported (2016-17) can still be submitted past the cut-off date for the publication of these figures. As a result data for 2016-17 is not yet complete. To avoid misleading comparisons between years HMRC have compared the years 2015-16 to 2014-15 in their publication when discussing change between years, and 2016-17 when discussing in-year characteristics.

Claims in the tax year
2016-17 so far

These sectors continued to have the greatest volume of claims, making up a total of 71% of claims and 75% of the total amount claimed

R&D claims are concentrated in companies with a registered office in London, the South East or the East of England 45% of all claims and 60% of the total amount claimed

Regional analysis of number and value of SME R&D tax credit claims, 2016-17

Based on government office region

London

North East

North West

Yorkshire & The Humber

East Midlands

West Midlands

East of England

South East

South West

Wales

Scotland

Northern Ireland

Firms registered inLondon

Number of
claims

Total value of
claims

Average
claims

Number of claims

Amount claimed £(m)

£74,695

Average claim value for SMEs

London

Regional allocation is based on the postcode of the company’s registered address, which might not correspond to where the R&D activity takes place, so caution must be exercised when interpreting these figures. Figures exclude claims where region is not known. Numbers are rounded to the nearest 5 and amounts are rounded to the nearest £5m.

Other services activities

Financial & Insurance

Arts, Entertainment & Recreation

Education

Health & Social Work

Transport & Storage

Agriculture, Forestry, Fishing

Water, Sewerage and Waste

Accommodation & Food

Real Estate

Electricity, Gas, Steam and Air Conditioning

Information & Communication

Number of
claims

Total value of
claims

Average
claims

Number of claims

Amount claimed £(m)

£55,978

Average claim value for

Information & Communication

This coding might not correspond to the industry sector of the R&D activity, so caution must be exercised when interpreting these figures. Figures exclude claims where industry sector is not known. Numbers are rounded to the nearest 5 and amounts are rounded to the nearest £5m. Where the number of claims is less than 5, or the value of claims is less than £5m we have excluded that sector from our results. This is the case for the Mining & Quarrying and Public Administration, Defence and Social Services sectors.

To date £21.4bn in tax relief has been claimed through these schemes.

Don’t miss out. You have nothing to lose by contacting us. But a lot to gain.

Comments from our CEO, Luke Hamm

R&D is the lifeblood of economic growth, and the government’s tax credits scheme has undoubtedly proved its value as an R&D stimulus. I’d like to see the number of claims made each year double. This would really move the needle for UK innovation.

If we want to be a future destination of choice for inward investment, our R&D targets need to be much more ambitious.

The UK is good at inventing things but not so good at supporting them. I’d like the government to do more to protect companies that get patents.

With Brexit on the Horizon, it is imperative that household names globally recognize the UK as a destination of choice for innovation.

Increased risk of material uncertainties In these unprecedented times, the audit of going concern assessments and reporting on material uncertainty related to going concerns are key for auditors. The Audit > Read more